Goldman Sachs Sees More Potential in Ether Than Bitcoin – Bitcoin News

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Global investment bank Goldman Sachs says ether is the cryptocurrency with the highest real use potential and could overtake bitcoin as the dominant digital store of value.

Goldman Sachs says Ether could overtake Bitcoin as the dominant store of value

Goldman Sachs shared his view on the future outlook for bitcoin and ether in a note published on Tuesday. Investment bank analysts have reportedly argued that real use cases for ether could make the cryptocurrency the dominant digital store of value, overtaking bitcoin as the best cryptocurrency. They wrote:

[Ether] It currently looks like the cryptocurrency with the highest potential for real usage because Ethereum, the platform on which the original digital currency is, is the most popular development platform for smart contract applications.

However, Goldman Sachs prefers gold, noting that no cryptocurrency will be able to surpass gold anytime soon. Analysts made it clear that cryptocurrencies are not a direct competitor to gold as a safe asset due to their high volatility.

Goldman described: “Gold competes with cryptocurrencies as much as it does with other risky assets such as stocks and cyclical commodities. We view gold as a defensive hedge against inflation and cryptocurrencies as an inflation hedge against risk.”

Moreover, the investment bank noted that competition between different cryptocurrencies is detrimental to the ability of crypto to become a safe asset class for investors. Goldman concluded:

This competition between cryptocurrencies is another risk factor that prevents them from becoming a safe asset at this point.

Goldman Sachs isn’t the only one seeing greater potential in ether than bitcoin. Jim Kramer, presenter of CNBC’s Mad Money Show, said he moved all of his bitcoin and invested in Ethereum for a similar reason mentioned by Goldman Sachs. In April, rival investment bank JPMorgan explained why Ether is outperforming Bitcoin.

Do you agree with Goldman Sachs on Bitcoin, Ether and Gold? Let us know in the comments section below.

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